By The South Asia Times

Tehran secures sanctions relief and $24 billion in frozen assets as Washington seeks nuclear guarantees in landmark ceasefire framework

CANBERRA -  A preliminary peace agreement between the United States and Iran, signed electronically on Sunday, outlines a 14-point framework that would end more than 100 days of war, reopen the strategic Strait of Hormuz, and set the stage for 60 days of intensive negotiations on Tehran's nuclear program, according to details published by Iranian state media and confirmed in part by US officials, ABC News reported.

The memorandum of understanding (MOU), signed by US President Donald Trump and Vice-President JD Vance on the American side, and by Iranian Parliament Speaker Mohammad Baqer Qalibaf for Tehran, was announced by Pakistan's Prime Minister Shehbaz Sharif, whose nation helped mediate the breakthrough alongside Qatar, Egypt, and Turkey .

Trump, speaking at the G7 summit in France, described the agreement as a "great deal" that would bring "peace and security to the whole region" . The formal signing ceremony is scheduled for Friday in Geneva.

- What Iran Says Is in the Deal

Iranian state media has published a list of 14 points that it says constitute the agreement's core provisions . Here are the key elements, with analysis of their significance:

1. Immediate and permanent cessation of hostilities on all fronts, including Lebanon

Iran has consistently demanded that Israel's military actions against Hezbollah in Lebanon cease as a condition for any broader deal. However, US officials have clarified that Israeli withdrawal from Lebanon is not a condition of the agreement, and Israel retains the right to self-defence . This remains a potential stumbling block, as Israel's Defence Minister Israel Katz stated the military would remain in Lebanese security zones "indefinitely" .

2. US commitment to non-interference in Iran's internal affairs and respect for sovereignty

This marks a stark reversal from Trump's earlier rhetoric, which had openly called for regime change in Iran when the war began in February .

3. Complete lifting of the naval blockade within 30 days

Trump imposed a blockade on Iranian ports in April, crippling the regime's lucrative oil trade. US officials have confirmed the blockade will be lifted in conjunction with the reopening of the Strait .

4. US commitment to withdraw forces from around Iran

The US has ramped up military forces across the Gulf region during the war. Officials say the agreement contemplates a reduction in forces, conditional on Iran making concessions on its nuclear program .

5. Reopening of the Strait of Hormuz within 30 days with Iranian arrangements

This is one of the most contentious points. Trump has insisted the strait will be open from Friday with "no tolls" on the waterway . However, Iranian officials have indicated that while there will not be a formal toll, management of the strait will involve "costs" for services such as navigation and preservation of the ecosystem . Iran and Oman have discussed a new system to "regulate" the waterway .

US officials expect traffic to return to normal within 30 days once mines are cleared from the channel .

6. Suspension of sanctions on oil, petrochemical products and derivatives

This represents one of Iran's biggest ambitions in the negotiations, offering significant financial relief . US officials have indicated this is part of the final deal, tying sanctions relief to Iran's compliance on nuclear negotiations . Reports suggest Iran can begin selling oil and fuel immediately upon signing .

7. Full access to Iran's financial resources

This refers to the release of an estimated $24 billion in frozen Iranian assets. US officials have said zero dollars have been released yet, but Iran's Foreign Ministry claims the US has committed to releasing funds .

8. Reconstruction plans for Iran worth at least $300 billion

Iran is demanding compensation for infrastructural damage inflicted during the war. Vance has suggested Gulf nations, not American taxpayers, would cover these costs, describing it as private investment rather than government grants .

9. 60 days of negotiations for a final agreement focused on nuclear issues

Both parties have acknowledged that after Friday's signing, negotiations will focus on the more difficult points: Iran's nuclear program, the complete lifting of sanctions, and UN Security Council resolutions . A final agreement would be endorsed through a UN Security Council resolution .

10. Reiterating Iran's commitment to the NPT not to produce nuclear weapons

Iran has consistently pointed to its membership in the Nuclear Non-Proliferation Treaty as evidence it does not seek atomic weapons. However, it remains the only country to enrich uranium to 60% without producing a bomb . Vance told NBC News the deal would see the US and the IAEA help Iran destroy its enriched stockpile .

11. US commitment not to increase military presence or impose new sanctions during negotiations

US officials have said the objective is to draw down forces, but caveats remain regarding Iran meeting its promises .

12. Release of $24 billion in frozen assets during the 60-day negotiation period

Half is to be released before formal talks begin, with the remainder released upon completion of the final agreement .

13. A monitoring mechanism to oversee implementation

Excluded from the agenda: Iran's support for regional proxies

Crucially, in the very last point of the 14-point list, Iran says its support of its regional proxies has been definitively "removed from the agenda" . Vance had previously cast doubt on leaked proposals, but since the agreement was announced, the vice president has not pushed back on this specific point .

What Tehran Hopes to Gain

For Iran, the deal represents a lifeline. Crippled by war, a naval blockade, and the effective closure of the Strait of Hormuz—through which 20% of the world's oil travels—the regime is significantly weaker than it has been in decades, according to US officials .

Tehran's key objectives are clear:

1. Sanctions relief – The suspension of oil sanctions and access to $24 billion in frozen assets would replenish regime coffers and stabilise the economy .

2. Reconstruction funds – The demand for $300 billion in reconstruction aid, even if funded by Gulf states, would help rebuild infrastructure devastated by US-Israeli strikes .

3. Regional influence – The agreement effectively legitimises Iran's role in managing the Strait of Hormuz and its presence in Lebanon, without forcing it to abandon its proxy network entirely .

4. Survival – Iran's leadership has portrayed the deal as a victory, with the country's top military command declaring that Iran had shown the US and Israel they had "no option but to accept defeat and surrender" 

    

   -What Washington Seeks

For the US, the deal is primarily about securing Iran's nuclear compliance and restoring global energy stability:

1. Verifiable nuclear freeze – Vance has insisted that Iran's commitment not to build nuclear weapons is "built into this agreement" and that the US will be able to verify compliance .

2. Strait of Hormuz reopening – Trump promised the strait would open on Friday, allowing oil to "flow on both ends again for the Region, and the World" .

3. Regional stability – The agreement aims to de-escalate tensions across the Middle East, including Lebanon, though Israel has expressed deep reservations .

4. Reduction of military footprint – The US hopes to draw down forces in the region, but this is conditional on Iran making concessions .

Challenges Ahead

Despite the breakthrough, significant hurdles remain. Israel has not signed the agreement and has criticised it, with far-right minister Itamar Ben-Gvir insisting Israel is not bound by the deal . Israeli Defence Minister Katz stated the military would remain in Lebanon indefinitely .

Additionally, the 60-day negotiation period on Iran's nuclear program is expected to be contentious. Iran's missile program and support for regional groups have been excluded from the talks, potentially leaving room for future conflict .